UK carrier Jet2 is due to report half-year results Nov. 18 as fuel-cost hedges and rising airline expenses come into focus, with potential fare increases a concern for passengers across the sector, The Independent reported.
Jet2 said it had hedged much of its fuel exposure for the current financial year, giving it a more predictable view of costs during that period. The Independent reported that Jet2’s outlook beyond the current financial year will be closely watched.
The Independent reported that Jet2’s bookings had remained resilient through the Iran conflict. Separately, Jet2 said in September that summer passenger numbers were 8.8% higher. The results come amid wider concerns that fuel costs may affect fares as carriers contend with higher jet-fuel bills.
International Airlines Group (IAG), the parent of British Airways, said its third-quarter fuel expenses rose 30.4%, an increase of €570 million (£471.9 million). IAG said it hoped to offset almost all of British Airways’ additional fuel expense over the year, but gave no estimate of fare increases or forward pricing expectations.
Ryanair is evaluating pay freezes and a larger role for artificial intelligence as it prepares for higher fuel costs next year. The airline has also warned that fares across Europe could rise by a double-digit percentage next year, The Independent reported.
Jet2 also plans to move its listing from AIM (Alternative Investment Market) to the London Stock Exchange’s main market in December, according to The Independent. The outlet reported that the airline is expected to join the FTSE 250 at the index’s next quarterly review.
Jet2’s September update has lifted expectations for its interim results, said Richard Hunter, head of markets at Interactive Investor. Hunter said customers booking closer to departure could complicate planning amid economic and geopolitical uncertainty. Jet2’s half-year results are scheduled for Nov. 18, The Independent reported.
